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An investor is computing the NPV of a project to determine whether or not to build a building. The investor has building plans produced by
An investor is computing the NPV of a project to determine whether or not to build a building. The investor has building plans produced by an architect that they will use to complete the building. The cost of these plans was $50,000. Should the $50,000 be included in the NPV calculation?
Yes, because the cost is related to the building.
Yes, because it is an opportunity cost.
Yes, because it is a fixed cost.
No, because it is a sunk cost.
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